Most stable currency - Most stable currency in the world 2010 - Gold Is The Most Steady Currency In The Economy

Gold Is The Most Steady Currency In The Economy

by forexrobot on August 22, 2010

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One of the most important ways to save citizens in extreme situations is a stable economy, which helps to avoid hunger, protect people and cope with disasters. But money is not very stable to all kinds of changes. It is related to the market system that allows it to drop or increase in price.

Sometimes we see that prices for different things rise from time to time. The reason is not because they cost more money, it is because the money itself worth less. An economy where money supply is not secured by gold, faces inflation. If the currency of the country is pegged to the gold stocks so the crisis is virtually invisible and the national currency is stable to fluctuations.

Watching the prices on gold during the last years you can see that they are vary all the time. Though it is not the price of gold that is changing, it is the price of money against gold moves up and down. Virtually the gold price remains steady for many centuries though the quantity of money you need to buy gold changes from time to time.

You may want to know why there are so many cases of countries’ bankruptcy, inflation if the quantity of existing money is equal to the gold. The reason is that the world economists desire to raise the value of the money and the ways they used to do so cause all kinds of economical disasters where common people suffer. Instead of stabilizing the economic situation of the country by rising the gold stocks, economists choose the method of inflation releasing more money. As a result everything becomes expensive and people don’t have enough funds to buy things. Money devaluates more and more and all this leads to poverty and chaos.

Currently there is so much money in the world, that it is impossible to associate it to the rate of gold, because it would increase the price of gold in a million times. For that reason such actions as inflation is necessary to do in order to save the stability of the world economy.

The invention of electronic money changed the situation. Banks have a lot of virtual accounts that are not tired by any gold supply. So we can say that the present price of gold has being deliberately significantly diminished.

Gold is one of the most traded commodities in Singapre Forex market. Silver and Oil are used too but their volumes are much lower. There are also many other commodities like Platinum, Rice, etc available for trading by many Singapore Forex brokers. Trading commodities is much different than currencies. Commodities market is more volatile and usually has wider spreads that requires any Singapore trader be more careful in using his trading strategy.

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